Multiple Choice
Reference: 11-01
Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product: During March, Bryan purchased 165,000 grams of direct material at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March using 151,000 grams of direct material and 32,000 direct labour hours.
-A favourable labour rate variance indicates that:
A) actual hours exceed standard hours.
B) the actual rate exceeds the standard rate.
C) standard hours exceed actual hours.
D) the standard rate exceeds the actual rate.
Correct Answer:

Verified
Correct Answer:
Verified
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